Judge tosses out libel suit against UCAN

A Superior Court judge has dismissed Michael Shames’ libel lawsuit against the Utility Consumers’ Action Network, the nonprofit advocacy group that he headed for nearly three decades.

Shames departed the consumer group last year amid a federal inquiry and internal charges that he kept secret bank accounts and accepted unauthorized bonuses — although he has consistently denied any impropriety.

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He filed the lawsuit in December 2012 against UCAN and its staff attorney, David Peffer.

Shames claimed that UCAN wrongly leaked information to the media and damaged his reputation, even as he worked to form a new consumer advocacy group.

Judge Ronald Prager, in a tentative ruling dated Thursday, noted that Shames is a public figure in a limited sense, which raises the standards for a libel action.

Prager added, “(Shames) has no direct evidence that anyone at (UCAN) made statements or leaked documents to the press. Thus, (Shames’) claims are all premised upon mere speculation” — an inference from news articles which does not create clear and convincing evidence under the law.

The judge also determined that Shames failed to prove any malice, another legal standard.

The suit was the latest chapter in a long-running saga involving UCAN, which began in the early 1980s as a community group to fight rate hikes requested by San Diego Gas & Electric and other utilities. The group receives substantial funding from intervenor fees and other proceeds of its consumer actions.

In recent months, the organization has been through several different executive directors and a number of its board members have resigned.

Shames was seeking unspecified damages and 10 percent of a $50,239 payment UCAN received from San Diego Gas & Electric — money Shames said he was due under the network’s bonus program.